Jul 23, 2020

Crush Creek encouragement for Evolution’s NQ future

Crush Creek encouragement for Evolution’s NQ future

Evolution Mining has reported encouraging assay results from several holes at the Crush Creek project, 30km south-east of its Mount Carlton mine.

The site is viewed as holding the potential to provide mine life extensions at Mount Carlton – carrying particular weight after a major resource blow at that site.

Evolution Mining last month announced that it had been forced to drop about 75,000 ounces of gold from its Mount Carlton life of mine plan after an extensive grade control infill program there.

Drilling commenced at Crush Creek in the June quarter with the aim of confirming and expanding the in situ mineral inventory at the Delta and BV7 prospects, the company said.

Evolution said there were several excellent intersections including 31.7m grading 5.68g/t gold and 4m grading 25.89g/t gold, illustrating the potential for high-grade mineralisation in narrow, structurally controlled ore shoots.

Two diamond rigs are currently on site, with an RC rig scheduled to arrive during the September 2020 quarter.

Upcoming work will focus on step-out drilling to expand the resource footprint as well as testing regional targets for new discovery.

Record cash flow

Evolution delivered the update as part of its latest quarterly report, which noted a record operating cash flow of $352 million for the company.

Its Queensland assets include Mount Carlton and Mount Rawdon gold mines, and it holds an economic interest in the Ernest Henry operation at Cloncurry. It recently sold its Cracow gold mine to Aeris Resources for a consideration of up to $125 million. (The company also owns mines in NSW, WA and Canada.)

Group production from Evolution’s Australian operations for the entire financial year was 719,035 ounces at an AISC of $1008 per ounce.

Growth plans at Cowal

Evolution Mining also provided an update on the next stage of growth at its Cowal gold operation in New South Wales, revealing plans to fast-track an underground development.

It declared a maiden underground ore reserve estimate of 804,000 ounces, ahead of schedule.

Evolution said the pre-feasibility study for the Stage 1 underground project had been successfully completed and it would submit an application to regulators for an underground mining permit this year.

Expected mining rates will be 1.5 – 2.0 Mtpa, which would supplement open-pit feed and support Cowal moving to a sustainable annual production rate in excess of 300,000 low-cost ounces.